Board hears status update on technology project
IMRF staff updated the Board on the project to replace its secure websites and the behind-the-scenes technology used to administer the pension system.
Staff highlighted many strategic successes since the transition, including successfully collecting all employer contributions and member employment data, delivering nearly $1.4 billion in benefit payments on time and in full, and exceeding processing goals for retirement claims during the last two months. At the same time, staff acknowledged the learning curve associated with the new system and presented a plan to normalize service levels by the end of the year.
To learn more about the project, watch this video from IMRF Executive Director Brian Collins.
Board discusses assumed rate of return
IMRF staff will review and provide feedback on a proposal from the Board President to modify the way the organization reviews and adjusts the assumed rate of investment return (ARR).
The ARR impacts employer contribution rates. When actual returns exceed the ARR, employer contribution rates decrease in future years. When actual returns fall below the ARR, employer contribution rates increase in future years.
Board President Peter Stefan suggested that IMRF adopt a more dynamic and flexible ARR. IMRF’s 7.25% ARR has changed twice since 1993, and Stefan said that it is no longer conservative. He suggested the board approve a lower ARR and move toward that target over time in small increments, in order to minimize the impact on employer contribution rates during any given year.
The Trustees agreed that Stefan’s proposals should be reviewed by IMRF staff, the actuary, and the investment consultant, and that their feedback should be presented at a future board meeting.
IMRF ranks highly in public pensions survey
IMRF ranked as a leading public pension in terms of cost-effective customer service during 2023, according to a new report from CEM Benchmarking.
The CEM report compared a group of 44 public pensions, including some of the largest systems in North America. The annual report analyzed the systems’ customer service levels and total spending during 2023.
According to the report, IMRF continued to have either a perfect score or scored above peer median across all measured activities. IMRF attained a score of 84, compared to a peer median of 79. The CEM report showed IMRF’s total cost per member and annuitant was $99, which was $43 below the peer average. This came despite operating in one of the highest-cost environments amongst the peer group.
New units of government join IMRF
The Board approved the participation of the following units of government:
- Helvetia Township
- Kendall Township
- Logan County VAC
- Reagan Mass Transit District
- South Grove Township
- St. Anne Community Consolidated School District 56
- Town of Chatsworth
- Village of Wonder Lake
Next Board meeting
The next regularly scheduled board meeting will be held Friday, November 22 at 9 AM at IMRF’s Oak Brook office.